Bank of America Rewarded Staff for Steering Clients Into Foreclosure: Lawsuit

Bank of America Rewarded Staff for Steering Clients Into Foreclosure, Suit ClaimsBank of America allegedly denied homeowners mortgage modifications and lied to them as part of a strategy to steer these clients into foreclosure, according to tactics outlined by former bank employees whose accounts are part of a lawsuit.
The former employees, who worked at the nation’s second-largest bank throughout the United States, said that Bank of America rewarded customer service representatives who foreclosed on homes, according to documents recently filed as part of a lawsuit in Massachusetts federal court.
The employees’ rewards included $500 cash bonuses and gift cards to retail stores, such as Target and Bed Bath & Beyond.
Mortgage employees allegedly falsified records and were told to delay applications for the government’s foreclosure-prevention program, known as HAMP (Home Affordable Modification Program) by requesting paperwork that Bank of America had already received, according to statements from ex-employees filed last week.
The lender unjustly disqualified applicants to HAMP, according to a May 23 statement from Simone Gordon, a loss-mitigation specialist who left the company in 2012.
Bank of America is being sued by homeowners who didn’t receive permanent loan modifications after making payments under trial programs, according to court papers.
“We were regularly drilled that it was our job to maximize fees for the bank by fostering and extending delay of the HAMP modification process by any means we could,” Gordon said.
Managers instructed workers to “delay modifications by telling homeowners who called in that their documents were ‘under review,’ when in fact, there had been no review,” she said.
Bank of America has helped the most homeowners under HAMP and is committed to assisting customers at risk of foreclosure, Rick Simon, a company spokesman, told Bloomberg today in an e-mail.
“At best, these attorneys are painting a false picture of the bank’s practices and the dedication of our employees,” Simon told Bloomberg.
Bank of America unsuccessfully tried to dismiss the complaint in 2011. U.S. District Judge Rya Zobel ruled that the case could move forward while dismissing some claims.
Zobel is scheduled to consider a class-certification request at an Aug. 1 hearing.
Loan specialists who put at least 10 customers into foreclosure, including those who were in trial modifications, were given a $500 bonus, said Gordon, who worked at Bank of America for more than four years.

9 thoughts on “Bank of America Rewarded Staff for Steering Clients Into Foreclosure: Lawsuit

  • June 15, 2013 at 5:08 am
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    I bet the harmed homeowners got a big fat $300. check in the IFR.

  • June 15, 2013 at 11:53 am
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    I hope They have to pay big this time I was a home owner till these thieving bastards wanted to steal my home and 5 years later I still have not been able to recover from this Bank of America should be Called Bank of Lie rs because that is wat they are

  • June 15, 2013 at 12:07 pm
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    Wonder if the other thieving banks did this too?

  • June 15, 2013 at 2:16 pm
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    This is no surprise to My Wife and I!! We were with CountryWide/ BofA, and They did this to us word for word as the article states! They wouldn’t work with us, told Us that They never received paperwork and made Us send it in again and again, told Us There was nothing We could do, wouldn’t transfer Us to the right People, ect. We received A crap check from the IFR for A measly $500. I hope karma comes back on the thieves!!

  • June 15, 2013 at 2:18 pm
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    Hello Bank of America still waiting on the rest of money from the independent foreclosure review. You screwed me out of 5200 because you out right lied about putting paper work in for modification. you never followed through but again you will receive a credit for my short sale. Understand if you had done the modification you could of helped and then FHA would not have lost money. Oh that’s right Bank of America is not stupid they still got there money because it was insured with FHA. Maybe one of these days the powers that be in government will look at the true picture and grow and set and get this done for all of the people who got screwed and were not asked to bend over.

  • June 15, 2013 at 9:35 pm
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    This is nauseating, but even if BofEvil receives another sanction, they STILL haven’t profited off these illegal activities. The best thing everyone can do, in my opinion, is to STOP using their products….credit cards, mortgages, investments. If enough people refuse to keep pumping money into the system, things will begin to change. I, personally, am trying to find a new way of living without things I’m told I need (by the banks).

  • June 16, 2013 at 10:27 am
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    @Jenny, yes that is the best way to slow them down. We all need to move our accounts to small independent banks or credit unions and cancel credit cards, anything to choke off the insane interest and profits to these big banks. Tell everyone that you can and teach your future generations!!!!!!!!!

  • June 19, 2013 at 12:58 am
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    BOA is the devil, they took my house after I was laid off, I begged them for a modification until I found another job, they refused, and 3 months after I lost my job, the put foreclosure papers on my door and I had 2 weeks to vacate the premises!!
    Lying Bastards!!!!

  • June 19, 2013 at 1:05 am
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    OH, and I asked them to reduce my 1,000 dollar a month mortgage by 200 to 800 a month to help me out. They refused choosing rather to foreclose and then promptly sold my 150.000 3 years old home for 57,000. I could spit on them if I could.
    \BOA Burn!!
    sorry just had to get if out!

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